Petrobras higher by 13% – talk about pain – shorts getting squeezed
Petrobras ( PBR , quote ) +13% - talk about the pain. Shorts are getting squeezed tight on the 5% raise in diesel prices. Added to the less than spectacular January raise, you now have tariff increases that make sense for Brazil.
All in all investors have to be wondering if this means the government now has no other choice but to improve the cash flow of this serial capital eater and political pawn.
Four or five times bitten, one time shy is the best way to describe the experience of many dedicated and casual investors of Petrobras and Brazil.
Today may be more than a squeeze but a signal of change. Stay tuned but don't hold your breath.